For Multiplayer and Singleplayer. (Both are fun, but theres a surprise at the end if everyone makes their own city in multiplayer, you can also work collaboratively in multiplayer)

There's a reference including my email at the bottom.

This challenge is meant for survival, but can be done in creative by altering the rules a bit, and the challenge will be finished a lot quicker in creative. It all depends on how you want to have fun! Also you don't have to follow the rules, it's just a more fun if you do. You can customize to make your own ruleset and play it that way if you want as well. You may use any seed you like as well. I personally used the seed "Notch" Which spawns you in a meadow. Finally, you may play on any mode, I personally recommend easy. If you complete all the steps you may use creative or do the bonus steps, so if you plan on going into creative turn cheats on. But do not use any commands until you get to that point.

The main idea of this challenge is to construct a city by "end game", or when you finish the challenge. But of course no city starts with diamond mansions and golden houses, you have to work your way up. And to make it a bit more realistic or challenging I added a few rules you normally wouldn't see. I also chunked your levels filled with challenges of what you must do to be "allowed" to use new materials and build new things. So I provided you with checklist for each level. Once you complete everything on the checklist you may move on to the next level. You are not limited to the checklist, as long as you follow the rules of the step you can build other things as well, such as a second house in step one. Let's start.

General (For every step):

• All mine shafts must be 3x3 at least
  
• Players may use a bucket if found.
  
• Any drops from mobs may be used if you obtain it, but may not craft an item until you are on the proper step. (For example you kill a zombie, and it drops an iron sword, you may use it, but if you kill a zombie and it drops iron, you may not use craft an iron tool with it unless you are on the proper step.
  
• Constructions must be well lit, enough to keep any mobs from spawning within 3 blocks of them in any direction.
  
• If you're not sure if you can use an item read ahead a bit, see if it says "you may now use..." or anything like that.
  
• Only use items you are allowed to use, or are craftable from those items.
  
• Once you reach the step after the previous, you can add on to the constructs you made previously with the new items you are allowed to use.
  

Level 1
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Rules: No use of any tools above wood (stone, iron, gold, diamond). You cannot build with or anything other than the following: Any Variety of: Wood, Wooden planks. Dirt, Wool (Not colored other than the natural you can get from sheep), Leather, Sand (Not sandstone),Glass (panes only), Coal and natural plants (rose, grass seeds, ect.). Remember you may craft other items such as stairs or paintings, as long as you can get them from using only the resources provided. You are not allowed to go underground yet. This means you can only use coal you find above ground.

• Each player must construct one house made of wood, must be floored with anything other than dirt or grass. This house has a minimal size of 5x5x5. There must be a door and two separate areas for "living" and a room with a bed.
  
• There must be a farm with at least 8 farmable plants. If you don't have a bucket you may need to do this by a water source.
  
• Optional: Town treasury, a place to store all your supplies and treasures.
  

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Level 2
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Rules: Players may go underground once this step is reached. Up to cobblestone tools may be used now (no iron, gold or diamond). You may only use items that can be crafted from what you are limited to. You may use sandstone and cobblestone but no stone can be used yet.

• Construct a town hall or "leader's office". This must be at least 7x7x7. It must contain the following rooms: Leader's office, meeting room, courtyard (in front of or inside of the building)
  
• Make or find a bucket (No other iron usage though)
  
• Construct a Mineshaft that goes down at least 20 blocks. If you find iron you may mine it but you cannot use it other than for a bucket. (Mine shaft must follow guidelines in "general")
  
• Construct a well.
  
• Construct a "forge" or "blacksmith" that utilizes furnaces
  

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Level 3
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Rules: You still may not use tools above cobblestone. You may use "smooth stone" or "cooked stone" and anything you can craft from it (example: Stone bricks). You may use colored wool now if you are allowed to make the dyes from the items provided.

• Construct 2 shops, one must be a bakery for your farm, another could sell any item or group of items, if you are playing in multiplayer each player can run their own shop. (An example is a food shop that sells all types of food, such as bread, steak, watermelon, ect.)
  
• Further construct your mineshaft down to 40 blocks (If not already)
  
• Construct a community structure. (Ideas include a library, a pool, tavern, ect.)
  
• Make paths connection all structures create so far, have a main path at least 3 blocks wide, continue to connect all new structures you create with this main path. (Paths branching off of the main path can be smaller, such as a 1x1 path leading to your first house.
  
• Expand your farm to at least 24 blocks of produce if you have not already.
  

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Level 4:
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Rules: You may now use up to iron tools (includes shears). You may now use Brick blocks. You may not use redstone.

• Expand your mineshaft down to bedrock.
  
• Construct a wall around your city, theres two options to making this wall. 1. Create is so that what you have built so far is in a "corner" and leave an open area to expand for further steps. 2. Create a very large area around everything you've made so far, but with a lot of room to expand. (I recommend option 2.)
  
• Construct another community structure
  
• Construct a "social" or "religious" building. This can be for any religion or a made up one (I made a church for bananas :P)
  
• Add another harvest able item to your farm, if not done already
  

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Level 5:
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Rules: You may not use anything above gold tools. You may not use redstone.

• Add towers to the walls you previously constructed for defense, have holes or openings you can use as "turrets".
  
• Construct a port if you are near a large body of water (a lake or river will do, but not a pond), If not feasible, make a windmill instead (Doesn't have to function).
  
• Make another community structure.
  
• Construct a jail.
  
• Construct another community building.
  

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Level 6:
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Rules: You may use diamond tools, and all blocks. You may not go to the nether. You may now use redstone.

• Construct a castle that includes:
  
• Bedrooms fit for a king for all players
  
• A feast hall
  
• A flag on top that, this will be your city flag
  
• A barracks
  
• A garden or courtyard in front of it
  
• A throne room
  
• Anything else you like as well as Optionals: A moat, a dungeon, ect.
  
• (No longer for castle) Construct another community constructions.
  
• Create a farm with at least one animal.
  

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Level 7:
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Rules: No restrictions, it's been a wonderful journey hasn't it.

• Construct a nether portal
  
• Construct an enchantment room in one of your structures, or as a separate structure
  
• Construct an apartment building, this must be at least 15x15 and 30 blocks high (This totals to be about 3030 blocks assuming you make 6 floors (not including walls in the floor or blocks used to design the rooms)
  
• Construct another community building (This totals to 5, if you want the city to be even bigger I recommend adding 2 more community buildings)
  
• Construct a subway or train station for quick transportation.
  
• Construct of anything, commemorating all the effort put into the city you built. I recommend using alot of colored wool to get the full effect.
  
• Expand your farm so that it has at lest 100 blocks of produce if not already and has all the following food items: Potato, Carrot, Wheat, Melon. Add these items (if not already) to your bakery
  

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Bonus: 1/Survival
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Rules: Stay in Survival mode for now.

• Construct a "Megastructure", You define this one. (A skyscraper is an example)
  
• Construct a ship on the water, if you have no water source you can make a train station to the nearest. (And when you do that you should go ahead and make the port you didn't make from Level 5)
  
• Extend to the heavens! Make a floating island village, or just a sky village. (Unless you want a giant shadow over the main city DO NOT construct it over your city.
  
• Construct an amusement park, with at least 1 roller coaster and any other rides you can incorporate.
  
• Construct a more houses, at least 4 more.
  
• Construct a mansion to go with your castle
  
• Construct a party room to celebrate an awesome, fun filled adventure, I hope you liked it.
  

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Bonus 2/Creative
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Rules: Change your mode to Creative

Set yourself in creative if you turned on cheats at the begging (I DID state this in the opening). Basically improve things you couldn't improve before due to lack of resources, build new things, also so you can add things like a teleport (with a command block). Your vision is now endless, heres a few ideas for you:

• Add villagers/testificates in the houses if you played on single player
  
• A teleporter
  
• A cheat room (filled with all sorts of creative mode stuff such as bottle o' enchanting)
  

There's a lot more you can do, those are just a few.

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End Notes:
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I really hope you had fun completing this challenge or just doing this challenge. When I did it it gave me a fun filled experience that really brought the life back on a game that was dying to me. Please post pictures of your kingdom here, I really want to see them all! :) If you have anything to ask me, my email is Customjack@gmail.com